NLC welcomes petrol price reduction

Nigeria Labour Congress on Monday welcomed the slash in the price of Premium Motor Spirit, but said the reduction is not sufficient enough.
It also described the move as a unilateral decision by the government.

In a statement signed by its General Secretary, Dr. Peter Ozo-Eson, the congress said the government sidelined the board of the Petroleum Products Pricing and Regulatory Agency who is statutorily empowered to determine price of petroleum products.

He said the price reduction envisaged by the congress is the one that will operate within the institutional framework of PPPRA, adding that the “logic of our reasoning is hinged on the premise that only the PPPRA is charged with the statutory responsibility of determining petroleum products’ prices based on a relatively acceptable template.

“Accordingly, it is the PPPRA (on whose board we have NLC, TUC, NUPENG, PENGASSAN, NURTW) relying on the existing price template that could arrive at a fair and just price reduction. In order words, the reduction by the government, as welcome as it is, is by fiat.

“It is unfortunate that the PPPRA board has been sidelined for so long. We demand that its board be constituted immediately to enable it discharge its statutory function.”

The statement added: “The reduction in the pomp price of Premium Motor Spirit (PMS) from N97 to N87 per litre is a welcome development. However in our estimation, it is not sufficiently deep enough.

“Prior to this price reduction, government had substantially devalued the naira, thus ensuring that the full benefits of falling crude price are not passed on to Nigerians. The N10 price slash translates to 10.3 per cent reduction compared to 33 per cent price reduction in most countries. For instance, in the United States the price dipped to under two dollars from three dollars per gallon.

“We recall urging the government to effect a price reduction following a sustained price slump of crude oil in the international market in order for Nigerians to benefit from the development. We commend the government for listening to our advice.

“However, beyond the issue of price reduction of PMS, the regulatory agencies in the downstream sector of the oil industry need to protect Nigerians against monopolistic exploitation.

“We make bold to refer to the unacceptable price manipulation by monopolies in the oil sector where prices have remained unreasonable high for diesel, the price of which is deregulated.”